RAMA PAPER MILLS LIMITED
ANNUAL REPORT 2006-2007
CHAIRMAN'S REPORT
Dear Shareholders,
I wish you and your family in the pink of health and spirit.
Your Company has continued its success path by achieving 9.48% increase in
the turnover as compared to the previous year. The Management is striving
hard for manufacturing quality product and thus to fetch better realization
of your Company's product. Moreover, in spite of sharp hike in raw material
rates in IInd half of the year could not be responded from the market, your
Company succeeded to retain the Profit Before Tax (PBT) to a reasonable
extent. These are commendable achievements which, I feel confident, will be
better in the coming years.
Your Company achieved almost 100% capacity utilization and stagnation in
growth. Your Company foresee the market of Tissue/ Poster Paper in India
and therefore, the Management has decided to install an imported MG Machine
having capacity of 16320 TPA. The Project will cost Rs.23.75 Crore and your
Company has been sanctioned term loan of Rs.13.40 Crore from Bank of
Baroda. Moreover, your Company also plans for expansion and modernization
to enhance the capacities of existing three units. The modernization mainly
envisages replacement of old and obsolete equipments by technologically
superior, high speed and energy efficient equipments, which will not only
increase the speed of the lines but also result in manufacture of better
quality paper. Improvement in quality is another main thrust area for
undertaking the proposed project. Your company is proposing to produce and
market complete range of quality products post expansion. With completion
of all the projects the total production capacity would go up to around
80000 TPA.
Moreover the Management of your company will carefully inter connect the
above expansion and modernization programs in such a way so that each round
of capacity expansion starts generating additional output before the next
phase is taken up. In that manner, we would hopefully be able to grow
capacities without affecting the on going production. Paper prices look to
be firm, the comparative higher capacities and save in power cost will
enhance sales and profits. Though the full impact of expansion and
modernization program will surface in 2008-09 still I believe that 2007-08
will be better year for your company.
Last but not the least, I take this opportunity to thank all our employees
for their unstinted commitment and valuable contribution to the company and
my sincere thanks to all of you for your continuous confidence and interest
in Rama Paper Mills Ltd. I also wish to convey my heartiest thanks to
Bankers, Central and State Government, Local Bodies and our Valuable
Customers.
With kind regards
Yours sincerely
Date : 30.06.2007 Pramod Agarwal